Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1887-12-27

GENTLEMEN: Mr.. c. P. Huntington
having asked that a receiver be appointed
for your road, upon the ground that said
corporation is in financial difficulties, 1t
would seem to me, in view Of the increased
business throughout the south and the in
creased tonnage over your road, that
committee should investigate thoroughly
as to the cause of such sad state of affairs
do not propose to touch upon the
numerous complaints which l have heard
| from time to time from the owners
| Of various industries situated on the line
Of your road, but to cOntine myself
strictly TO few facts directly coming
under my notice. l am president of the
Winifrede Coal Company, corporation
having paid in cash capital of four hun
dred and fifty thousand dollars ($45O, 600;
owning 10, 900 acres of land, having some
two hundred houses thereon, and popu-
lation of upward twelve hundred people.
am also president of the Winifrede Rail
road Company, having paid in cash CAPT.
tai of one hundred and fifty thousand dol
lars $3.50, 600, owning a standard gauge
railroad of some five and q half miles in
length and fully equipped for business.
Neither of the above corporations has any
bonds, mortgage, preferred stock or float
ing debt
The Winifrede railroad connects with
the Chesapeake and Ohio railway at Wini-
frede Junction, thirteen miles east OF
Charleston, Kanawha county, West Vir-
ginia. The present capacity of the mines
is |, 900 tons of coal daily. of this ton
mage, practically not one pound goes over
the line of your road. In 1882 a freight
rate was accorded the above coal company
to Newport News and Richmond, as fol-
lows: ITO Newport News, 81 % per ton,
and to Richmond, 81 per ton for coal TO be
shipped from these points to the eastern
markets; and upon the assurance that the
rates were given in good faith, and that
they could take contracts based thereon,
the coal company made sales and COM
menced shipments, but Immediately upon
shipments being made freight rates were
ad ganced to So per ton to Newport News
and S275 per ton to Richmond. 1t is for
you to ascertain whether or not freight
rates of as low as $l.35 per ton on coal
have been accorded the Chesapeake and
Ohio Coal Agency or other favored parties.
The first vessel chartered Schooner Re-
becca Florence, August, 1882 by the
Winifrede Coal Company to take coal to
Eastern markets was ordered to Newport
News, and instead of Winifrede coal being
put therein, other coal probably that be-
longing to the Chesapeake & Ohio Coal
Agency was given to this vessel, and the
| Winifrede company was requested TO sell
its coal, shipped for the above purpose, to
the cCal agency, and to permit the substl-
tuition of other coal in another vessel
which it was proposed to furnish in lieu OF
the vessel taken. This substitution OF
coal was positively declined. ThereupOn
another vessel was furnished, but the coal
company was told that the shipment OF
coal thereafter would have to cease, as the
interests of the Chesapeake 4 Ohio Coal
Agency coutlicted with the said business.
Therefore, after filling few existing con-
tracts, the Winifrede Coal Company ceased
practically to do business over your line.
Within the last two weeks application
has been made by the Winiirede Coal Com
pany for cars for the shipment of coal
west. An average of less than one car
daily has been accorded, though an order
for twenty-five ears daily WIS given; and,
therefore, the Winiirede Railroad Com
pany in consequence OF cars not being
furnished promptly and in quantity, asked
that their own cars, to the number of $50
leach holding six tons, and similar IN
every respect 10 the siX-tOn coal cars OF the
Lehigh Valley Railroad), be forwarded.
This proposition was declined nOtwith-
standing it was proposed to waive all charges
foT car services or wheelage thereon. The
reason given by General Wlckham, re-
ceiver, for declining to accept coal In
the Winilrcde Railroad COmpany's six
ton cars, was that the curves on the
Elizabeth, Lexington aud Big Sandy
division Of the road were
too sharp, AID the grades heavy.
Il is q well known fact that both
the Philadelphia and Reading and Lee
high Valley railroad companies use thOus-
ands of six.ton coal cars, for the reason
that they can 20 around sharper curve
than ten, twenty or thirty-tOn car. And
it is unnecessary to add that a slX-ton car
can he hauled over grade which ten,
twenty or tEirty-tOn car Is unable to sur
mount. The two Winifrede companies
above referred to have spent upwards OF
$500, 900 in cash on the lire of your road,
and il may I've n surprise to you to know
that neither freight station nor ticket
AGENTS station has been placed at Wlnl-
frede Junction by your company, the
Winifrede Railroad Company having ac-
corded the above facilities free OF rent for
the last four years. II is fact that
| freight stations and ticket offices have
been placed at points on the line OF your
road where the population Is not exceed
ing - people.
If 4 committee of investigation is APP
pointed it might be well for them to inVes-
tigHte:
Flrst-The policy of continuing coal
agency; the price at which coal IS bought
and sold by them; the freight rates earned
by YOUR company upon said coal; commits
sions accorded said agency; salaries PAID
| its officers, and who comprise the coal
agency.
second-Whether the Chesapeake and
Ohio railway is practically a transporter OF
coal, or buyer and seller of the same
through favored parties.
Third-Wbether or not Mr.. Huntington,
| in his desire to scale the bonds, Is SIMPLY
seeking to borrow money at per cent TO
do coal, coke and lumber business, for
the benefit of individuals, corporations or
parties other than the Chesapeake and
Ohio Railway Company.
| Fourth-Whether or not more tickets
have been sold and more money received
for freight by your company at Winifred
Junction than any station between Charles
ton and Kapawha Falls iCaunelton posi-
bly, eXcepted.l
| Finh-Whether or not coal lands are
owned directly or indirectly by directors
OF yeur company upon which a royalty for
coal mined is paid TO said directors, and
every facility accorded in the way of fur
nishing cars, etc, in order to give q large
tonnage and the consequent earning OF a
large royalty.
Sixth-Whether or not the very Vitals OF
vour road have been Slapped by tavoritism
in the supplying of cars and the granting
OF net rates of freight to agencies, lndIyld-
uals, or corporations, in which the officers
of your road are directly or indirectly in